In a landmark development, the Securities and Exchange Commission of Pakistan (SECP) has ushered in a new era of digitalization in the insurance sector by registering and issuing a license to M/s Salaam Family Takaful Limited as the country’s first-ever digital family takaful operator.
The initiative comes as part of the SECP’s ongoing efforts to modernize and transform the insurance landscape in Pakistan. The registration regime for digital-only insurers and dedicated micro-insurers, introduced through an amendment to the Insurance Rules, 2017, aims to leverage technology to enhance customer convenience and promote financial inclusion.
According to a press release issued by the SECP on Wednesday, the licensing of digital insurers marks a significant milestone in the evolution of Pakistan’s insurance industry. By lowering entrance barriers and fostering competition, digital insurers are poised to revolutionize the market by offering innovative products and services tailored to meet the evolving needs of consumers.
Digital insurers are expected to play a pivotal role in driving insurance penetration in the country by leveraging digital channels to reach a wider audience. With the premium from digital channels currently accounting for less than 1% of the total industry premium, the registration of M/s Salaam Family Takaful Limited signals a paradigm shift towards harnessing the potential of digital platforms to expand the reach of insurance services.
The advent of digital insurers is set to bring about a host of benefits for policyholders, including streamlined claims management, enhanced connectivity through portal-based communication, and personalized services designed to cater to individual preferences. By embracing customer-centric international best practices, digital insurers aim to redefine the insurance experience and deliver value-added solutions to consumers.
The SECP’s decision to grant registration to M/s Salaam Family Takaful Limited underscores the regulator’s commitment to fostering innovation and driving progress in the insurance sector. Pursuant to the provisions of sub-section (1) of section 10 of the Insurance Ordinance 2000, the notification for the grant of registration signifies a significant milestone in the journey towards digital transformation.
As Pakistan embarks on its digitalization journey, the registration of the country’s first digital takaful operator marks a pivotal moment in the evolution of the insurance industry. With technology poised to reshape the way insurance is bought, sold, and managed, the SECP’s pioneering initiative sets the stage for a future where digital innovation drives growth, enhances accessibility, and empowers consumers across the nation.
